Indian_Real_Estate_Law (2)

Indian Real Estate Laws 112
4.100 Determination of
lease
111. A lease of immovable property determines—
(a) by efflux of the time limited thereby;
(b) where such time is limited conditionally
on the happening of some event—by the
happening of such event;
(c) where the interest of the lessor in the
property terminates on, or his power to dispose
of the same extends only to, the happening
of any event—by the happening of such
event;
(d) in case the interests of the lessee and
the lessor in the whole of the property become
vested at the same time in one person in the
same right;
(e) by express surrender; that is to say, in
case the lessee yields up his interest under the
lease to the lessor, by mutual agreement between
them;
(f) by implied surrender;
(g) by forfeiture; that is to say, (1) in case
the lessee breaks an express condition which
provides that, on breach thereof, the lessor
may re-enter 1[* * *]; or (2) in case the lessee
renounces his character as such by setting up
a title in a third person or by claiming title
in himself; 2[or (3) the lessee is adjudicated
an insolvent and the lease provides that the
lessor may re-enter on the happening of such
event]; and in 3[any of these cases] the lessor or
his transferee 4[gives notice in writing to the
lessee of] his intention to determine the lease;
(h) on the expiration of a notice to determine
the lease, or to quit, or of intention to
quit, the property leased, duly given by one
party to the other. Illustration to clause (f)
A lessee accepts from his lessor a new lease
of the property leased, to take effect during
the continuance of the existing lease. This
is an implied surrender of the former lease,
and such lease determines thereupon. COM-
MENTS Doctrine of merger The doctrine of
merger is attracted when a leasehold and revision
coincide. If the lessee purchases the
lessor’s interest, the lease is relinquished as the
same person cannot at the same time be both
landlord and tenant. The doctrine of merger is
based on the principle of union of two conflicting
interests which cannot be held by one person
at the same time. Therefore, the leasehold
rights in favour of the appellants stand extinguished;
Ramesh Kumar Jhambh v. Official
Assignee, High Court Bombay, AIR 1993 Bom
374. Implied surrender There can be implied
surrender, if the lessor grants a new lease to a
third person with the assent of the lessee under
the existing lease who delivers the possession
to such person or where the lessee directs
his sub-tenant to pay the rent directly to the
lessor. Since the respondents had by executing
the agreement impliedly surrendered their
leasehold rights, they were no longer lessees;
P.M.C. Kunhiraman Nair v. C.R. Nagaratha
Iyer, AIR 1993 SC 307. Clause (1) of section
111(g) has no application as there was
no covenant prohibiting sale or on its breach,
of the right of re-entry. Clause (2) of section
111(g) is also of no avail to the landlord for
forfeiture because there is no unequivocal and
clear disclaimer of title of the landlord. Therefore
neither clause (1) nor (2) of section 111(g)
are of any avail for forfeiture; Guru Amarjit
Singh v. Rattan Chand, AIR 1994 SC 227.
The statement by the tenant that he was not
aware of as to who was his landlord cannot be
held to be denial of title of landlord and no
eviction decree by forfeiture was granted; Munisami
Naidu v. C. Ranganathan, AIR 1991
SC 492. It has been held that the Board was
entitled to institute proceedings against the
tenant as the notice period had expired; Vasant
Kumar Radhakishan Vora v. The Board
of Trustees of the Port of Bombay, AIR 1991
SC 14.
4.101 Waiver of forfeiture
112.A forfeiture under section 111, clause (g)
is waived by acceptance of rent which has become
due since the forfeiture, or by distress
for such rent, or by any other act on the part
of the lessor showing an intention to treat the
lease as subsisting: Provided that the lessor
is aware that the forfeiture has been incurred:
Provided also that, where rent is accepted after
the institution of a suit to eject the lessee
on the ground of forfeiture, such acceptance is
4.102 4. THE TRANSFER OF PROPERTY ACT, 1882